1. Which of the four-market structure has the highest barriers to entry. Explain.
2. Provide two examples of barriers to entry common in an oligopoly market structure.
3. Define and explain why game theory is use to analyse a firm in an oligopoly market.
4. Use the game theory matrix to illustrate a strategic decision you made recently.

Market Structures Market Structure Perfect competition Monopolistic Oligopoly Monopoly competition Example Theoretical Hairdressers, Taxi Supermarkets, Phone Theoretical extreme... Fruit companies manufacturers extreme... Royal Mail, sellers, foreign regional monopolies exchange markets Number of firms Large number of Large number of Small number of One small firms small firms large firms Product Homogenous Similar but slightly High level of Unique product differentiation (identical products) differentiated differentiation products Barriers to entry and o Zero Very low High Very high exit Price setting Firms are price Firms are price Firms are price Individual firm sets takers makers makers price